Virtu Financial

Virtu Financial is a global leader in technology-driven market making and liquidity provision, primarily acting as a counterparty to buyers and sellers by quoting over 12,000 securities and other financial instruments across more than 235 independent exchanges, markets, and liquidity pools in 36 countries, earning spreads and providing liquidity to the market. In the cryptocurrency space, the company has a dedicated Crypto trading team that participated in the launch of the cryptocurrency exchange EDX Markets, which is designed for institutional investors and offers trading in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. Additionally, Virtu is an authorized trader for several Bitcoin spot ETFs, such as ARK 21Shares, Bitwise, and Grayscale, and collaborates with the derivatives exchange FairX, which is regulated by the U.S. Commodity Futures Trading Commission (CFTC).

The company primarily earns profits from market-making activities by capturing the bid-ask spread, while also generating technical service revenue by providing technical infrastructure and institutional execution services to third parties. In terms of cryptocurrency, participating in cryptocurrency exchanges can yield income from trading fees, and as an authorized trader for Bitcoin spot ETFs, it can also derive revenue from related activities, such as earning trading spreads and service fees by providing market-making services for the ETF.

On one hand, market-making activities can provide liquidity to the market, promote the efficient operation of financial markets, and allow investors to trade more conveniently. At the same time, the company can accumulate profits through small price differences in a large number of transactions, thus obtaining a stable cash flow. On the other hand, the profit model related to cryptocurrency business enables the company to participate in the rapidly growing cryptocurrency market. As the scale of the cryptocurrency market expands and institutional investor participation increases, the company is expected to gain more profits, which also helps to expand its business scope and enhance its influence in the fintech sector.

In terms of the impact on cryptocurrencies, the main effects are on mainstream coins such as Bitcoin and Ethereum. As an authorized trading partner for Bitcoin spot ETFs, its trading activities and market-making behavior will affect the market liquidity and price stability of Bitcoin, increasing market demand for Bitcoin. Participating in the business related to EDX Markets exchange and providing trading services for cryptocurrencies such as Ethereum will also influence the trading activity and market price of these coins, helping to enhance their market recognition and liquidity.